Reports indicate slowdown in Chinese manufacturing : oil prices slide near US$105

24-Mar-12

Benchmark U.S. crude fell by almost two dollar to US$105.3 per barrel, falling to its lowest level in a week, after reports indicate a slowdown in Chinese manufacturing. Industrial activity in China dropped to a four-month low in March, indicating a possible slow demand for crude. Brent crude fell by over a dollar to US$123.1 per barrel. Another cause of concern in the markets is lower U.S. oil and gasoline demand amid assurances by Saudi Arabia that it can quickly boost output by 25% in case of a sudden disruption in global supplies.